07-16-2020 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 169 2020
Present:
Susan Bickel, Mayor
Mark Mullinix, Vice Mayor
David B. Norris, President Pro Tem
Darryl C. Aubrey, Councilmember
Deborah Searcy, Councilmember
Andrew D. Lukasik, Village Manager
Leonard G. Rubin, P.A., Village Attorney
Tammy Held, Deputy Village Clerk
ROLL CALL
Mayor Bickel called the meeting to order at 7:00 p.m. All members of Council were present. All
members of staff were present, except Village Clerk Jessica Green.
PURPOSE OF THE MEETING
Mr. Lukasik provided an overview of the preliminary 2021 Budget. The following items were reviewed:
• FY 2021 PRELIMINARY BUDGET SUMMARY
• FY 2021 PERSONNEL COST ASSUMPTIONS & TOTAL POSITIONS
• FY 2021 BUDGETED DEBT SERVICE & LOAN REPAYMENT SCHEDULE
• FY 2021 COUNTRY CLUB HIGHLIGHTS
• FY 2021 COUNTRY CLUB PRELIMINARY BUDGET SUMMARY, REVENUES & EXPENSES
• FY 2021 GENERAL FUND HIGHLIGHTS
• FY 2021 GENERAL FUND PRELIMINARY BUDGET SUMMARY, REVENUES & EXPENSES
• FY 2021 — 2025 VEHICLE LEASE PROGRAM PAYMENTS
• FY 2021 — 2025 CAPITAL IMPROVEMENT PLAN CASH FLOW SUMMARY
• FY 2021 CAPITAL OUTLAY
• FY 2021 TAXABLE VALUE & MILLAGE SELECTION
FY 2021 PRELIMINARY BUDGET SUMMARY
Mr. Lukasik gave an overview of changes that were made to the General Fund and Country Club
budgets. He stated that the tennis and pool operations are now included within the Country Club
budget. Mr. Lukasik also noted that the overall budget has increased by almost $1.2 million dollars,
which was due to the growth in golf and expenditures in the General Fund, as well as some
increases in revenues and expenditures in tennis. Including the pool and tennis transfer, the General
Fund has decreased compared to the current fiscal year by 1 percent. The General Fund costs
associated with personnel and CIP transfers has also increased. The Country Club budget has also
increased by $1.4 million dollars compared to last year. Forty percent of the increase was due to
pool and tennis. Personnel costs for the Country Club made up 34 percent of the budget. The
number of full and part-time positions were also discussed as it related to the General Fund and
Country Club budgets.
Village Council Workshop Session held July 16, 2020
Category
Millage Rate
Personnel
Operating
Debt Service
Capital Overlay
CIP Transfer
Contingency
Transfer to Country Club
Total
Position Type
Full -Time
Part -Time
General Fund
Country Club
Total
$7.50
N/A
$7.50
$17,083,228
$1,850,013
$18,933,241
6,186,569
3009429
9,246,998
1,640,000
433,689
2,073,689
10,000
99,500
1095500
510,000
0
510,000
13 5,200
0
13 5,220
274,000
0
274,000
$25,839,017
$5,443,631
$31,282,648
General Fund
Country Club
Total
142
10
152
49
55
104
FY 2021 PERSONNEL COST ASSUMPTIONS & TOTAL POSITIONS
Page 2 of 5
Mr. Lukasik reviewed personnel cost assumptions and the total number of full and part-time
positions. There were four categories, which were made up of Non -Union, PBA, IAFF and FPE
employees. Mr. Lukasik discussed how salary range adjustments, merit increases and wage
adjustments can affect budget costs. Employees within IAFF have the largest increase associated
with personnel costs, contracts and health selections. Mr. Lukasik noted that there were no
increases to the health insurance premiums. He also reviewed ICMA, Police and Fire, and General
Employees pension contributions. Discussion took place regarding employee wages, salary
adjustments and merit increases. Mr. Lukasik reviewed personnel costs by department. He also
reviewed health insurance, benefits costs, and personnel changes by department.
Description
Non -Union
PBA
IAFF FPE
6%
3%
Salary Range Adjustment
N/A
(10/l/20)
(10/l/20) N/A
4%
3%
4% 4%
Merit Increase
(anniversary date)
(anniversary date)
(4/l/21) (4/l/21)
6%
3% $750 bonus
Wage Adjustment
N/A
(anniversary date)
(10/l/20) (10/l/20)
Health Insurance
No increase
Workers' Compensation
10% increase
Insurance
ICMA
Police & Fire
General Employees
Pension
Pension
Pension Contribution
15%
16%
12%
Village Council Workshop Session held July 16, 2020
FY 2021
Full -Time 152
Part -Time 104
FY 2020 Change
153 -1 FT
102 +2 PT
FY 2021 BUDGETED DEBT SERVICE AND LOAN REPAYMENT SCHEDULE
Page 3 of 5
Mr. Lukasik reviewed the FY 2021 Budgeted Debt Service. Mr. Lukasik explained that the vehicle
leases and the Clubhouse loan were within the General Fund. The initial golf course loan and 2018
golf course restoration were within the Enterprise Fund. The interest was totaled under Country
Club expenditures and there is a total of $2,073.689 in debt service between the General Fund and
Country Club budget. Discussion ensued regarding the clubhouse loan and payment schedule.
Description
Vehicle Lease
Clubhouse Loan ($15m)
Initial Golf Course Loan ($4,893,673)
2018 Golf Course Restoration ($1.7m)
Total
General Fund Country Club
$348,000
1,292,000
FY 2021 COUNTRY CLUB HIGHLIGHTS
$1,640,000
398,159
35,530
$433,689
Mr. Lukasik reviewed the FY 2021 Country Club Highlights, including:
Total
$348,000
1,292,000
398,159
35,530
$2,073,689
• The Country Club was recovering from the COVID shutdown. There was a $600,000 revenue
loss combined in golf, tennis and pool, however there is optimism for the upcoming year.
• Golf was performing well financially; exceeding last year's performance.
• Tennis can close the funding gap. There was restructuring of the fee schedule and enhanced
caliber of instruction, which will ensure lesson revenues offset tennis pro payroll. Also,
more programming will be developed with a higher rate of return and plans to increase
total membership to close the funding gap.
• Pool was increasing revenue, but expenses have increased for proper maintenance. Programming
for events on the deck, private party rentals and increased membership can enhance funding.
• Restaurant financial performance was excellent pre-COVID; met the $2 million gross
revenue threshold. Volume has decreased since reopening, which is consistent with most
in the industry. There is hope of recovering. The budget assumes $100,000 in rent and
reaching-$-5-million in -gross -sales ($150,000).
• Golf operations continue to be the main revenue driver for the Clubhouse in both daily
sales and membership dues. They are proposing a 3% membership dues increase this year,
and an increase in walk-in rates up to $5/round based on day, time and season.
• A full-time Assistant Golf Professional position will be added in order to provide adequate
managerial coverage.
• Golf Course maintenance increased by 15% to include funding for the bunker and pond
improvements. Investment is needed in order to continue upgrading the course.
• Tennis and Pool operations have been reintroduced into the Country Club Budget. There
will be a transfer from the General Fund to the Country Club Budget to offset some of its
costs. General Fund contribution is similar to years past with a goal to reduce the overall
transfer requirement, which is slightly higher in the pool this year due to capital
contribution. Costs have increased due to maintenance at the pool and costs for tennis pros.
Village Council Workshop Session held July 16, 2020
Page 4 of 5
• Tennis and Pool personnel costs will increase by the addition of one part-time Head Tennis
Professional and a Pool Supervisor converted to an Independent Contractor.
FY 2021 COUNTRY CLUB PRELIMINARY BUDGET SUMMARY, REVENUES & EXPENSES
Mr. Lukasik gave an overview of the FY 2021 Country Club Preliminary Budget Summary,
Revenues and Expenses. He explained that pool and tennis operations were added into the budget
and noted that total expenditures and revenues have increased, with a $1.1 million dollar increase
in expenditures. Mr. Lukasik gave a breakdown of all revenues and expenses, explaining the main
increases and decreases. Golf remains a main source of revenue for the Country Club. Discussion
further ensued in regard to the Country Club budget.
% Increase/ $ Increase/
Category FY 2021 Budget FY 2020 Budget Decrease Decrease
Total Revenues $5,443,631 $3,983,588 36.65% $1,460,043
GENERAL FUND HIGHLIGHTS
Mr. Lukasik reviewed the FY 2021 General Fund Highlights, including:
• There has been a decline in several revenue categories due to COVID.
• Major upcoming issues include Master Plan implementation, USI lane repurposing pilot
program, redevelopment of code implementation, residential code update, bridge project
planning, undergrounding overhead lines, and Anchorage Park dry storage.
• Personnel costs are generally flat in terms of staffing with delaying new hires and filling open
positions when possible. Health insurance has increased 0.3% or $6,900. There was a slight
reduction in pension for Police & Fire due to State and employee contributions.
• Vehicle leases consist of a rear load sanitation truck (purchase approved) and three police
vehicles. The Village's policy on vehicle leasing will need to continue to be re-evaluated.
• Clubhouse debt service.
FY 2021 GENERAL FUND PRELIN41NARY BUDGET SUMMARY, REVENUES & EXPENSES
Mr. Lukasik gave an overview of the FY 2021 General Fund Preliminary Budget Summary,
Revenues and Expenses. He explained that ad -valorem taxes are anticipated to increase, however
there was a decrease in other General Fund line -items and expenditures. Utility service taxes and
ad -valorem taxes made up the majority of the revenue, followed by fines and forfeitures and
charges for services. Mr. Lukasik gave a breakdown of all revenues and expenses, explaining the
main budget increases and decreases by -department-. The--Public--Safety--and--Public---Works
departments had the largest amount of expenses.
% Increase/ $ Increase/
Category FY 2021 Budget FY 2020 Budget Decrease Decrease
Total Revenues $25,839,017 $26,123,977 -1.09% ($284,960)
FY 2021 - FY 2025 VEHICLE LEASE PROGRAM PAYMENTS
Mr. Lukasik discussed the FY 2021 — FY 2025 Vehicle Lease Program Payments and reviewed
how much is being spent per department. New vehicle leases this year consist of a rear load
sanitation truck and three police vehicles. The total payment for FY 2021 is $347,639. This
amount is recorded in the General Fund budget as debt service. Higher costs are anticipated in
future years and will need to be evaluated.
Village Council Workshop Session held July 16, 2020 Page 5 of 5
FY 2021 - FY 2025 CAPITAL IMPROVEMENT PLAN CASH FLOW SUMMARY
Mr. Lukasik discussed the FY 2021 — FY 2025 Capital Improvement Plan Cash Flow Summary.
Mr. Lukasik stated that the Council would receive a budget book with more detailed information
within the next two weeks. The estimated ending balance for FY 2021 was $123,110, with higher
balances projected in the future. The total amount estimated for capital improvement projects over
the next few years is $11,210,240.
FY 2021 CAPITAL OUTLAY
Mr. Lukasik reviewed FY 2021 Capital Outlay and discussed all of the revenue categories, which
were General Revenues, Country Club, Infrastructure Surtax, and Grant Funds. It is estimated that
the FY 2020 balance would have no dollars left. It is estimated that there would be a balance of
$720,000 in the FY 2021 Infrastructure Surtax Fund. Mr. Lukasik further discussed FY 2021
projects and costs.
FY 2021 TAXABLE VALUE & MILLAGE SELECTION
Mr. Lukasik reviewed the FY 2021 Taxable Value & Millage Selection. The proposed millage
rate was 7.50 mils. This sets the maximum millage rate allowed for the Village. The Council may
reduce this rate for the final adopted budget, but may not increase it. Mr. Lukasik explained there
was an ad -valorem increase by 3.81 % over the FY 2021 roll -back rate.
FY 2021 BUDGET HEARING AND WORKSHOP DATES
Mr. Lulcasik outlined the budget workshop schedule. A public hearing to set the tentative millage
rate was scheduled for July 23rd and a budget workshop was scheduled for August 15th. Public
Hearings were scheduled for September 10th and 24th, with 2nd reading and final adoption of the
FY 2021 budget and millage rate on September 24th.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:17 p.m.
Tammy Held, Deputy Village Clerk